62
Javier Milei’s first year: $3 billion surplus and tenfold lower inflation in 2024
(www.financial-world.org)
this post was submitted on 18 Dec 2024
62 points (79.8% liked)
News
23605 readers
3681 users here now
Welcome to the News community!
Rules:
1. Be civil
Attack the argument, not the person. No racism/sexism/bigotry. Good faith argumentation only. This includes accusing another user of being a bot or paid actor. Trolling is uncivil and is grounds for removal and/or a community ban. Do not respond to rule-breaking content; report it and move on.
2. All posts should contain a source (url) that is as reliable and unbiased as possible and must only contain one link.
Obvious right or left wing sources will be removed at the mods discretion. We have an actively updated blocklist, which you can see here: https://lemmy.world/post/2246130 if you feel like any website is missing, contact the mods. Supporting links can be added in comments or posted seperately but not to the post body.
3. No bots, spam or self-promotion.
Only approved bots, which follow the guidelines for bots set by the instance, are allowed.
4. Post titles should be the same as the article used as source.
Posts which titles don’t match the source won’t be removed, but the autoMod will notify you, and if your title misrepresents the original article, the post will be deleted. If the site changed their headline, the bot might still contact you, just ignore it, we won’t delete your post.
5. Only recent news is allowed.
Posts must be news from the most recent 30 days.
6. All posts must be news articles.
No opinion pieces, Listicles, editorials or celebrity gossip is allowed. All posts will be judged on a case-by-case basis.
7. No duplicate posts.
If a source you used was already posted by someone else, the autoMod will leave a message. Please remove your post if the autoMod is correct. If the post that matches your post is very old, we refer you to rule 5.
8. Misinformation is prohibited.
Misinformation / propaganda is strictly prohibited. Any comment or post containing or linking to misinformation will be removed. If you feel that your post has been removed in error, credible sources must be provided.
9. No link shorteners.
The auto mod will contact you if a link shortener is detected, please delete your post if they are right.
10. Don't copy entire article in your post body
For copyright reasons, you are not allowed to copy an entire article into your post body. This is an instance wide rule, that is strictly enforced in this community.
founded 2 years ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
But the people are unemployed and in poverty.
New Normal
They would be either way. For the moment there is some hope and evidence things are getting better instead of just endlessly sliding worse and worse.
The evidence is it's getting worse, not better. Poverty is increasing significantly.
How is there hope?
Because inflation rate is decreasing. It's still triple digits but it's going down.
Imagine a wildfire spreading rapidly. Remedial action is taken and then it continues to spread but notably slower. Obviously there's more to do but it is still good news for a place where that is in short supply.
Why is low inflation but high poverty a good thing?
It's not a good thing. No one here is arguing that poverty is good. It's that their current choice is 'still pretty high inflation w/ high poverty' is preferable to 'holy shit that's their monthly inflation w/ high poverty'.
Low poverty is no longer in Argentina's deck for the foreseeable near future. Inflation will rob the working class people of any thing they are given or earn.
The poverty was far lower before Milei started implementing austerity measures, so yes, by saying his measures are a good thing, you are saying high poverty is a good thing.
Only if you believe there is no direct connection between the devaluation of people's savings paired with increased costs of goods and poverty.
Hyper inflation in itself leads to poverty.
Then why is poverty so much higher now than it was before Milei started implementing his libertarian ideas?
Inflation is going down. That brings hope. A year ago some saw their life savings' purchasing power cut to a third. That brings despair. This year it only went down by half, which brings hope because it's an improvement. Once inflation is at a reasonable level, economic growth will have to bring hope, which it probably won't, since Milei will be focused on lowering debt and trying to fill the hole in the central bank, which still stands at negative 7 billion dollars in foreign reserves.
Being in poverty with hope is really not any different from being in poverty without hope. You starve either way.
It's why inflation sucks soo much.
The only realistic way to make it so you can keep affording to buy something is to make it so alot of people can't afford anything for now.
Or we could perpetually redistribute the excess wealth of the rich so everyone can have proportional spending power again.
Ir we could tie min wage to inflation.
There's better ways of fixing income inequality than making everyone unemployed and homeless, but i guess it's time humanity learn this economic lesson AGAIN instead of making correct decisions.
First, I fully agree the super wealthy need to pay more tax - let's not get in the way of that.
Redistribution of wealth would only drive up inflation, not actually fixing the problem of inflation v incomes. Basic supply and demand equilibrium - incomes increase, quantity demanded increases (price goes up), new suppliers enter market to meet this new demand that are willing to accept this higher price.. Higher prices and quantity supplied.
Giving everyone more money to buy food doesn't magically create space for new farms, especially not in the short term.
There is not enough wealth in Argentina to distribute to all the poor people. You need to grow the economy first. But if you print a lot of money and spend it, you get inflation.
So Milei is first getting spending and inflation in order which is cratering the economy. But at least it solves the budget and inflation problem.
...at the cost of human lives. Why does that not concern you?
Let me guess what you said about 10% inflation in the US
Now imagine 200%
Please do guess. But not before answering my question.
The inflation concerns me more than the slight contraction in the economy. If the country is stable and the currency is stable, that will encourage investment and help people in the long term.
Argentina has tried redistributive policies and it has caused huge problems for the economy. The man got elected promising to fix the inflation and he already did it.
https://www.reuters.com/world/americas/argentina-inflation-dips-locals-dare-hope-worst-is-over-2024-12-11/
He can't just go back on his election promise
You still didn't answer my question.
60% poverty is not a "slight contraction in the economy."
Edit: You libertarians go ahead and keep downvoting me. Milei is killing people.
Not the person your debating with, and normally I agree with the famous Mr Squid.
In this case I disagree - im not fully knowledgeable on Argentina specifically, just economic application. The problem with inflation is that it harms your entire population - and its horrific when its out of control. 60% poverty (don't know if this is total, increase or increases since these measures came out, very different discussions) is easily obtainable when a significant amount of your population are already close to the poverty line and even a small change comes into effect.
Regarding the cost of human lives, and assuming he's not Trump levels of econ knowledge, its a balance between putting this 60% in poverty now to get a handle on inflation now, or that 60% in poverty due to inflation indefinitely until you put them and more people in poverty.
Anything that increases government spending, including social support services, infrastructure spending, unemployment support would increase GDP and work directly against disinflation measures.
Its cold, it sucks, but the logic and theory are there. Sometimes the best thing you can do is cause the least long term harm.
As I keep saying, poverty has increased by 20% since Milei implemented these measures. If people have to starve to death in order to make inflation go down, how can you say that's worth it the way it's being done?